Sprout Social (NASDAQ:SPT – Get Free Report) and JFrog (NASDAQ:FROG – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Profitability
This table compares Sprout Social and JFrog’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sprout Social | -6.13% | -8.80% | -3.64% |
| JFrog | -7.35% | -2.71% | -1.80% |
Risk and Volatility
Sprout Social has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, JFrog has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Institutional and Insider Ownership
85.0% of JFrog shares are owned by institutional investors. 9.6% of Sprout Social shares are owned by insiders. Comparatively, 11.8% of JFrog shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sprout Social and JFrog, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sprout Social | 2 | 4 | 4 | 0 | 2.20 |
| JFrog | 1 | 1 | 21 | 0 | 2.87 |
Sprout Social currently has a consensus target price of $10.88, indicating a potential downside of 14.77%. JFrog has a consensus target price of $109.48, indicating a potential upside of 9.90%. Given JFrog’s stronger consensus rating and higher possible upside, analysts plainly believe JFrog is more favorable than Sprout Social.
Valuation & Earnings
This table compares Sprout Social and JFrog”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sprout Social | $457.55 million | 1.69 | -$43.33 million | ($0.50) | -25.52 |
| JFrog | $531.84 million | 23.09 | -$71.82 million | ($0.37) | -269.22 |
Sprout Social has higher earnings, but lower revenue than JFrog. JFrog is trading at a lower price-to-earnings ratio than Sprout Social, indicating that it is currently the more affordable of the two stocks.
Summary
JFrog beats Sprout Social on 11 of the 14 factors compared between the two stocks.
About Sprout Social
Sprout Social, Inc. designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. It offers integrated tools, such as social engagement/response; publishing; reporting and analytics; social listening and business intelligence; reputation management; social commerce; employee advocacy; and automation and workflows. In addition, the company provides smart inbox, social customer relationship management, social monitoring and alerts, customer service tools, and automation; and centralized content planning, creation, and publishing, automated scheduling, content performance reporting, suggested content, message approval workflows, publishing permissions and governance, and content and asset libraries. Further, it offers social media; content performance, customer service and team, custom report builder, and reporting API; and market research, brand health, competitive insights, consumer trends, and product feedback; and social commerce, reputation management, employee advocacy, mobile applications, and chat bot creation and management. Additionally, the company offers professional services consisting of consulting and training services. It serves social and community management; public relations; marketing; influencer marketing; customer service and care; commerce, sales and customer acquisition; recruiting and hiring, product development, and business strategy; and small-and-medium-sized businesses, mid-market companies, enterprises, marketing agencies, government, non-profit, and educational institutions. Sprout Social, Inc. was incorporated in 2010 and is headquartered in Chicago, Illinois.
About JFrog
JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.
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